#1NISSAN www.nissan-global.com Nissan's Global Strategy Nomura Investment Forum Toshiyuki Shiga Chief Operating Officer December 6, 2012#21 Changes Surrounding Auto Industry 2 Nissan's Global Growth Strategy 3 Talent Management to Support Strategy Implementation 4 Nissan Risk Management to Support Growth Strategy NISSAN 2 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#3Environment Surrounding Global Auto Industry ■Major 3 + 1 changes 1. Expanding Emerging Countries 2. Various Environmental Technologies 3. Downsizing /Lower Prices NISSAN 3 4 IT changes to + automobile society (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#41. Expanding Emerging Countries Transition in global total industry volumes: Clear expansion of emerging markets (million units) 100.0 90.0 80.0 70.0 60.0 54 50.0 40.0 30.0 20.0 10.0 0.0 11 76 40% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 NISSAN 4 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. Japan/US/Euro Others *60% 40% '16 BRIC www.nissan-global.com#5US b France Japan Russia Brazil China Potential future based on vehicle ownership per 1,000 people 50 160 250 Indonesia 40 India 15 0 200 400 800 600 Opportunity for further expansion in China and India, as populations are larger with fewer vehicles owned. 600 800 1,000 (unit) Source: JAMA "World Motor Vehicle Statistics 2012" (data as of 2010) NISSAN 5 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#62. Dealing with Various Environmental Technologies EV FCV HEV Plug-in HEV Zero-emission World Diesel Downsizing ICE/ Improved fuel economy Japan: HEV/Fuel-efficient gasoline engine/CVT Europe: Diesel/Downsizing/DCT transmission US: High-output fuel-efficient gasoline engine/HEV China: Fuel-efficient gasoline engine/EV recommended by government NISSAN Со 6 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#73. Global Trend of Downsizing and Lower Prices Structure of new car demand Mature Market High Growth Market: Structure of New Car Demand Replacement First Purchase Specific and unique product specifications and services for customers in emerging markets NISSAN 7 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#81 Changes Surrounding Auto Industry 2 Nissan's Global Growth Strategy 3 Talent Management to Support Strategy Implementation 4 Nissan Risk Management to Support Growth Strategy NISSAN 8 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#9Nissan's Global Growth Strategy 1 Aggressive Strategy Strategy for emerging countries Strategy for lower- priced/compact vehicles V-Platform 2 Leadership Strategy PURE DRIVE XTRONIC CVT PURE DRIVE HYBRID Zero Emission 3 Partnership Strategy Renault-Nissan Alliance RENAULT NISSAN NISSAN 9 DATSUN 启辰 PURE DRIVE VENUCIA dCi DAIMLER DONG FENG MITSUBISHI MOTORS ASHOK LEYLAND AVTOVAZ (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#10Global Development Structure 29 overseas sites/offices Europe Vietnam China Taiwan United States NTCE('88) NTV ('03) ZNTC('93) DNTC('03) NCIC('04 YNTC('80) NTCNA('83) NTC NTCAF('65) South Africa RNTBCI('08) India NTCSEA('03) NTCSEA-I('10) Thailand NISSAN NTC-MEX('94) NTC-BRA('00) Indonesia Mexico Brazil NISSAN 10 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#11Emerging Countries Offensive: China DONG FENG Zhengzhou Plant (Henan province ) Xiangyang Plant (Hubei Province ) Huadu Plant (Guangzhou City) New plant (Dalian City) LCV NISSAN 11 Tiida *Announced in July, 2011 2000 2015(PV+LCV) •2 million units 1600 •Market share 10% 1200 800 400 0 CY03 CY05 CY07 CY09 CY11 CY15 Venucia D50 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. 同世界、優中国 启辰 东风日产 VENUCIA 69 www.nissan-global.com#12Emerging Countries Offensive: Partnership Strategy in India Plan to increase production capacity from 200K to 400K units Establish partnership to strengthen product competitiveness and promote localization ✓ Alliance Plant Local Partnership Europe RENAULT NISSAN NISSAN ASHOK LEYLAND Develop LCV NISSAN GCC Chennai Africa Response. NISSAN 12 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.#13Emerging Countries Offensive: Partnership strategy in Russia Alliance market share 40% Market Share Nissan mid-term plan RENAULT NISSAN Market share (TIV): 10% or over ☐ Market share (TIV or foreign vehicles): 15% or over Sales volume: 400K or over MS in Foreign TIV 7.5% MS in Total TIV 8.3% 5.9% 4.8% 161K 102K FY10 FY11 FY12 FY13 FY14 FY15 FY16 NISSAN 13 Datsun Infiniti Nissan Nissan AVTOVAZ Renault Avtovaz 33% 40% ALMERA, 1st local production model (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#14Emerging Countries Offensive: Alliance strategy in Brazil Increase Alliance market share to 13% by 2016 (Present: 6.5%) OFFICIAL SPONSOR Rio 2016 NISSAN NISSAN 里 NISSAN 14 Curitiba (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. NISSAN Jan S Resende New Plant www.nissan-global.com#15Emerging Countries Offensive: ASEAN 5 (Thailand, Indonesia, Malaysia, Philippines and Vietnam) Production Capacity FY12:220K units/year FY14 370K units/year ASEAN5-MTP 500K 阳光 SUNNY (Sales Unit) More than Triple 150K NISSAN (FY10) (FY16) NISSAN KE The Markenn Even Production Capacity FY12:100K units/year FY14:250K units/year 6% (Market Share) 15% NISSAN 15 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#16Emerging Countries Offensive: Lower-priced/Downsizing strategy Datsun brand to be launched in India, Indonesia and Russia DATSUN NISSAN 16 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#17Zero-emission Leadership units 50,000 45,000 M/C 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Cumulative Nissan LEAF sales:46 k units Density of quick-charging facilities Approx. 1,200 locations as of August 31, 2012 0 May_10 Mar_10 Jan 10 Nov 09 Jul 09 Sep 09 Jul 10 Nov 12 Sep 12 Jul 12 Mar 12 May_12 Jan_12 Nov 11 Sep 11 Jul 11 May_11 Mar 11 Jan_11 Nov_10 Sep_10 NISSAN LEAF Renault ZOE CITROEN C-ZERO Renault KANGOO MITSUBISHI ¡MiEV FORD FOCUS EV NISSAN 17 Renault FLUENCE PEUGOT ION (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. 10km 20km 30km www.nissan-global.com#18Zero-emission Leadership Zero Emission. CALIFORNIA NISSAN 18 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.#19Zero-emission Leadership この夏、 リーフは暮らしの電源へ。 リーフに貯めた電力を家で使えるようになります。 ■24KWの大容量バッテリーで、家まるごと約2日分の電気をまかなえます。 ■に貯めた電力を軽に使えば、ピークシフトに貢献できます。 ■非常時の電源として活用できます。 3 Energy storage system LEAR Introduction of EV/FCEV Smart Community NISSAN 19 Become the leader in EV battery (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#20Zero-emission Leadership Evaluating joint development with Daimler for mass- production of fuel cell vehicles NISSAN DAIMLER KXOB RHE NISSAN X-TRAIL FCV 20 20 F-CELL BOCETFICIENCY tion Mercedes-Benz B-class F-CELL (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#21Industry-leading environmental technology strategy PURE DRIVE C Clean Idle stop CVT Diesel Super Charger Zero Emission AMUICH NOTE CVT Three base technologies One-motor Lithium-ion two-clutch battery P-HEV CVT 1M2C Li-Ion Battery FF-HEV CVT 1M2C Li-Ion Battery 0 NGP Blue Citizenship PURE DRIVE FR-HEV FY10 HYBRID NISSAN Copyright Nis 2012 All rights reserved. 1M2C Li-Ion Battery PURE DRIVE S-HYBRID FY16 Малесип утомато#22Difficult for one company to deal with ongoing changes Investment Customer needs Speed Expanding Emerging Government ties NISSAN 22 22 Countries Various Environmental Technologies Downsizing /Lower Prices + 4 IT changes to automobile society Human Resources Technology (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#23Importance of Partners Shared investment Utilization of local expertise Supplement NISSAN 23 Partnership Technological supplement Synergy Substitute Utilization of Local human resources Offset (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#24Our Partnerships RENAULT NISSAN RENAULT DONG FENG DAIMLER RENAULT NISSA DAIMLER AVTOVAZ BTOBA3 ASHOK LEYLAND NISSAN MITSUBISHI NISSA MOTORS BISHI MOTORS NISSAN 24 カルロスコーン #718 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#251 Changes Surrounding Auto Industry 2 Nissan's Global Growth Strategy Talent Management to Support Strategy 3 4 Implementation Nissan Risk Management to Support Growth Strategy NISSAN 25 25 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#26Nissan Global Management Based on global organization/human affairs/culture, maximize Nissan group's overall performance with optimal allocation and full utilization of human resources and competencies Resource management Talent management Corporate culture Global HR Management (H/C, L/C) NAC (Corporate, by Function, by Region) HPP Nomination by Career Coaches *2 *1 Identify *3 Evaluate Develop Global Training (GET, LEAD, G-NRDP)* CDP for HPPS Succession Plan for Key Posts Commitment & Target 's CFT / V-up ✓ NISSAN WAY NISSAN WAY NISSAN Diversity Diversity V-up NISSAN V-up PROGRAM Select *1) NAC: Nomination Advisory Council, *2) GET: Global Executive Training, *3) NRDP: Nissan Rotational Development Plan NISSAN 25 26 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.#27Diversity of Top Management Promote diversity at top management levels Non-Japanese Management Committee members 44% CVP or above @NML 24% 100 major global posts 49% NISSAN 27 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#281 Changes Surrounding Auto Industry 2 Nissan's Global Growth Strategy Talent Management to Support Strategy 3 4 Implementation Nissan Risk Management to Support Growth Strategy NISSAN 28 28 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#29Selling and General Administrative Expenses 20% SG&A expenses to sales ratio 18.1% 15.9% 15.0% 15% 10% 5% 17.3% 14.1% 12.3% 11.8% 11.2% 0% FY FY 2005 2006 FY 2007 FY 2008 FY FY FY FY 2009 2010 2011 2012 1H NISSAN 29 29 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#30Extended Adoption of CMF Extended adoption of CMF along with increased volume → Economies of scale + Synergies from commonization ➤ CMF: 12% (2013) ⇒ Challenge to 58% (2016) Electrical & Electronics architectur CMF: 12% Vehicle type Engine FR under compartment body Cockpit RR under body (2013) MPV Heavy weight| High Position Heavy weight High hood SUV CMF: 58% SED Middle Position Middle weight| Middle weight Low hood (2016) H/B Light weight Low Position Light weight NISSAN 30 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#31Increase Commonality Ratio with Renault ➤ Achieve commonality ratio of approximately 50% with Renault through CMF Current Commonality ratio 7% NISSAN 31 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. CMF Commonality ratio Above 50% *Vehicle turnover basis www.nissan-global.com#32Total delivered Cost (TdC) Challenge Comprehensive cost competitiveness and enhancement activities including parts purchasing as well as vehicle assembly and logistics R&D P TdC Scope (Total delivered Cost) Standpoint of TdC R&D Carry-over/carry-across Weight reduction Spec review Improved packaging for designing Quality (including warranty) Reduction of variations Purchased parts Procurement of materials and components LCC utilization Localization Increased carry- over/carry-across Improved packaging Fill rate improvement Inventory reduction Customs Parts logistics Production Vehicle logistics Marketing Sales & (Sales Sales company Parts production Parts logistics Nissan in-house plants Number of molds Takt time improvement Operating ratio improvement Yield improvement Optimized allocation In/On-site Localization Reviwing routes Inventory reduction Bara-ka Improved packaging Fill rate improvement Logistics quality improvement Customs In/On-site Optimized allocation Standpoints to be strengthened by TdC NISSAN 32 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#33Summary Growth 1. 2. 3. Growth Strategy Aggressive strategy • • Emerging countries Compact vehicles/Lower-priced vehicles Leadership strategy Zero-emission Pure Drive Partnership strategy 1. Optimization of fixed cost Investment efficiency High operating rate GFS Management of selling 2. and G&A cost 3. CMF 4. TdC Challenge Competitiveness/Tolerance NISSAN 33 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. * Prudent Management NISSAN POWER CHALLENGE 88 www.nissan-global.com#34NISSAN NISSAN 34 极 CHALLENGE NISSAN POWER 88 HIS SEALING (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com#35NISSAN NISSAN 35 (C) Copyright NISSAN MOTOR CO., LTD. 2012 All rights reserved. www.nissan-global.com